According to a Bloomberg report, Venture Smart Financial Holdings, a Hong Kong-based financial services company, plans to launch a physically-backed bitcoin exchange-traded fund (ETF) in this year’s first quarter. By year’s end, the firm is targeting $500 million in assets under management for the spot crypto ETF.
Venture Smart asserts its position as the inaugural approved virtual asset manager in Hong Kong. While it has not yet filed an official application with the city’s Securities and Futures Commission (SFC), the company aims to launch the bitcoin spot ETF product within Q1 based on recent regulatory permissions.
In December 2022, the SFC announced Hong Kong was ready to consider applications for spot crypto ETFs, along with issuing associated guidance. With these new frameworks, Venture Smart must still gain formal approval to bring its spot Bitcoin ETF to market.
The launch efforts highlight Hong Kong’s ambitions to reestablish itself as Asia’s premier cryptocurrency hub after rolling out licensing for crypto exchanges last summer. Only bitcoin futures ETF products have gone live in Hong Kong so far.
According to industry executives, around ten asset managers in Hong Kong are exploring physically backed crypto ETFs following the SFC’s rule changes. Offering spot and derivative products may help the city compete with Asian hubs like Singapore.
The planned entry of Venture Smart’s spot ETF comes on the heels of the first U.S. bitcoin spot funds launching earlier in 2024. While initial trading volumes exceeded $13 billion, bitcoin’s price has slumped below $41,500 amid cooling enthusiasm.
How much spot ETF products in Hong Kong may influence bitcoin valuations remains uncertain. However, easier access to crypto exposure should boost broader adoption in the regional hub if funds gain traction.
Also Read: Bitcoin ETF Liquidity Provider Flowdesk Secures $50M in Series
